HM Treasury: 24 things you need to know about the 2018 Budget

HM Treasury has published its own 'at-a-glance' 24 things you need to know about the Budget.

The chancellor has presented his Budget to Parliament – here’s a summary of what was announced.

1. Public finances have reached a turning point
Since 2009-2010 the deficit has fallen by four-fifths, from 9.9% to 1.9%. Public debt peaked in 2016-17 and is now falling. On average, spending on public services will grow 1.2% above inflation a year from next year until 2023-24.

2. Employment is at a near record high and the OBR forecasts it is set to keep growing
The economy has grown every year since 2010, and is projected to continue growing in each year of the forecast. The unemployment rate is at its lowest for over 40 years, there are over 3.3 million more people in work since 2010 and the OBR forecasts 800,000 more jobs by 2022.

3. National Living Wage will increase to £8.21
From April 2019 the National Living Wage will increase from £7.83 an hour to £8.21. This will benefit around 2.4 million workers, and is a £690 annual pay rise for a full-time worker.

4. The tax-free Personal Allowance will rise to £12,500
The Personal Allowance – the amount you earn before you have to start paying income tax– will increase by a further £650 in April 2019 to £12,500.

This rise comes a year earlier than planned, and will be maintained in 2020. This means a basic rate taxpayer will pay £1,205 less tax in 2019-20 than in 2010-11.

5. The Higher Rate Threshold will increase from £46,350 to £50,000 in April 2019
The amount people will have to earn before they pay tax at 40% will increase from £46,350 to £50,000 in April 2019.

This means that in 2019-20, there will be nearly 1 million fewer higher rate taxpayers than in 2015-16.

6. £1.7 billion to increase existing work allowances in Universal Credit
Increases to work allowances will mean working parents and people with disabilities claiming Universal Credit will be £630 better off each year.

People will also receive extra help as they move from their existing benefits to Universal Credit and there will be targeted support for people repaying debts.

7. A new railcard for all young people aged 26 to 30, available nationally by the end of the year
The first digital only railcard will offer up to a 1/3 off most rail travel.

8. Fuel duty will remain frozen for a ninth year
In 2019, fuel duty will remain frozen for the ninth year in a row, saving the average driver £1,000 since 2010.

9. Short-haul rates of Air Passenger Duty will not rise
Short-haul rates of Air Passenger Duty will not rise for the eighth year in a row, keeping costs down for 80% of passengers. Long-haul rates will rise in line with inflation.

10. Duty on beer, cider and spirits remains frozen
The cost of a pint of beer will be 2p lower than if duty had risen by inflation.

11. NHS funding will increase, including more spending for mental health
The NHS is the public’s number one priority and the government will increase its budget by £20.5 billion after inflation by 2023-24. Within this, the NHS will increase mental health spending by more than £2 billion a year by 2023-24.

12. £650 million for social care next year
Local authorities in England will receive a further £650 million in social care funding next year.

13. Lifting the borrowing cap to allow local authorities to build more housing
From today in England the government is lifting the cap on the amount of money local authorities are able to borrow to build housing. Local authorities fund housing through a separate Housing Revenue Account (HRA).

The Welsh Government is also taking immediate steps to lift the cap in Wales.

14. £400 million extra for schools this year
This will be £10,000 for the average primary school and £50,000 for the average secondary school.

15. A commemorative 50p Brexit coin will be available to buy from Spring 2019
The Royal Mint will create a new commemorative Brexit coin to mark the UK’s exit from the European Union.

16. Up to £19 million in commemoration of the Centenary of the WWI Armistice
Up to £8 million to help with the cost of repairs and alternations to village halls, Miners’ welfare facilities and Armed Forces organisations’ facilities.

£10 million to support veterans with mental health needs through the Armed Forces Covenant Fund Trust.

£1 million for First World War Battlefield visits for school students.

17. £30 billion to improve roads
A £28.8 billion National Roads Fund, paid for by road tax, includes £25.3 billion for the Strategic Road Network (motorways, trunk and A roads). The largest ever investment of this kind.

It will also help fund the new network of local roads (known as the Major Road Network), and larger local road projects.

Local authorities will receive £420 million to fix potholes on roads and renew bridges and tunnels, and there will be a £150 million to improve local traffic hotspots such as roundabouts.

18. More money for Scotland, Wales and Northern Ireland
Scotland, Wales and Northern Ireland will all get more money to spend in devolved areas, including education, health and housing. This Budget means:

over £950 million more for the Scottish Government through to 2020-21

over £550 million more for the Welsh Government through to 2020-21

over £320 million more for a Northern Ireland Executive through to 2020-21

There will also be £150 million for a Tay Cities Deal, £120 million for a North Wales Growth Deal, £350 million for a Belfast City Region Deal and opening negotiations on Derry/Londonderry and Strabane City Region Deal.

19. Over £1.5 billion to support the high street
Small retail businesses will see their business rates bills cut by a third for two years from April 2019, saving them £900 million.

Local high streets will benefit from £675 million to improve transport links, re-develop empty shops as homes and offices and restore and re-use old and historic properties.

Public lavatories will receive 100% business rates relief.

This adds to previous reductions in business rates since Budget 2016 which will save firms over £12 billion over the next five years.

20. £1 billion more for defence over the next two years
The Ministry of Defence will receive an extra £1 billion to help protect the UK against changing threats such as the rise in cyber-attacks and the resurgence of state-based threats.

This funding adds to the £800 million announced earlier this year.

21. Increasing funding to help departments to prepare for Brexit to over £4 billion
The government is providing £500 million of additional funding for departments to prepare for Brexit for 2019-20. This is on top of the £1.5 billion already announced for that year.

22. The Annual Investment Allowance will increase to £1 million from 1 January 2019 to 31 December 2020
The government will increase the Annual Investment Allowance five-fold from £200,000 to £1 million to help businesses to invest and grow.

Also, from October 2018, businesses will be able to deduct 2% of the cost of any new non-residential structures and buildings off their profits before they pay tax.

23. A 2% digital services tax on large digital firms
From April 2020, large social media platforms, search engines and online marketplaces will pay a 2% tax on the revenues they earn which are linked to UK users.

24. Further changes to the apprenticeship levy to support employers
From April, large businesses will be able to invest up to 25% of their apprenticeship levy to support apprentices in their supply chain.

Some employers will pay half of what they currently pay for apprenticeship training – from 10% to 5%. The government will pay the remaining 95%.

Victoria is group editor, Mortgage Solutions and Your Mortgage at AE3 Media.
Previous titles include editor of What Mortgage and Credit Today and a stint freelancing for various titles, including The Guardian, Which? and Money.co.uk

NEWSLETTER SIGN UP

For just two more minutes of your time, you can register for premium access

Specialist lending newsletters

Access to exclusive content

Priority event notifications

Business information tailored specifically to your business needs

Engage in interactive commenting and voting in our weekly polls

Specialist Lending Newsletter

You may also be interested in the Specialist Lending Solutions newsletter. All the latest news, analysis and insight from the mainstream residential lending market. Including industry news, adviser business strategy tips and market commentary.

Email address

First name

Surname

Postcode

By submitting your details, you are agreeing to AE3 Media’s privacy and data policy
The data controller is AE3 Media Ltd. We will use your data for the purposes of sending you newsletters from Mortgage Solutions and any other relevant information from Mortgage Solutions such as events, research, feedback, and surveys. You can view the full details by visiting the privacy policy

LOGIN

please sign-in using your email and password

Success....

Please enter your email address and we will email you a link where you can change your password.

Premium access

Register to gain access to MortgageSolutions.co.uk for the latest news analysis, interactive comment, industry video and features, all at your finger tips. Vote in our polls, get your opinion across on the news and watch out for our weekly editorial round-up features.

Delegate places are free of charge, subject to approval by the organisers based on job criteria

Registered delegates have access to the seminars where applicable. You will be given an identification badge, which must be shown upon request.

Once you have registered and your application has been accepted, then you are expected to attend. If you are subsequently unable to attend, please make sure your notice of cancellation is sent at least three weeks prior to the date of the event.

All cancellations must be received in writing. You will receive confirmation of your cancellation. Suitably qualified replacements may be sent if you are unable to attend; however, the organisers must approve them before the event takes place.

Should you be unable to attend, a substitute delegate is always welcome, subject to confirmation by the organisers and on receipt of the change in writing.

AE3 Media reserves the right to change the programme, speakers, dates or venue at any time, without notice. Should for any reason the venue or speakers change, or the event be cancelled due to an act of terrorism, extreme weather, disease control, industrial action, act of God or any eventuality beyond the control of AE3 Media, we shall endeavour to reschedule; but the client hereby indemnifies AE3 Media and holds AE3 Media harmless from and against any and all costs, damages and expenses, including legal fees, incurred by the client.

AE3 Media will not be liable for damage, loss, injury, accident, annoyance, delay or irregularity, which occurs by reason of any act or default committed by any person or company.

UK law shall apply to any claim against AE3 Media and all proceedings shall be within the exclusive domain of the UK Courts.

The signature of the delegate/visitor or his/her duly authorised agent on the registration form shall signify the delegate/visitor's acceptance of the above conditions and the same shall bind both parties to this contract.